Investor Presentaiton
Number of rating actions
Managing Ratings1 in Turbulent Times
Non-Financial Corporates: COVID-19 Dashboard (Q4 2021)
Recovery in credit quality still intact; rating actions reveal a thoughtful and measured approach to credit
Upgrades surpass downgrades in late 2020; speculative-grade default rate declined; some risks to the recovery on the horizon
Upgrades - Downgrades --Represent default rate
-
Building heights represent the global speculative grade default rate on a trailing 12-month basis
Certain sectors and lower rating categories remain
more pressured
350
300
250
200
3.6
150
100
50
0000000
6.8
SECTOR
% NEGATIVE OUTLOOK/REVIEW-DN
Transportation: Consumer
33
7%
Hotel, Gaming & Leisure
30
Aerospace & Defense
6%
Global All Sectors
30
10 13 15
Investment Grade All
●Speculative Grade
5%
Regional - All Sectors
vum 11 12 17 19
4%
3%
1.7
2%
T
T
T
T
MAR
APR
MAY JUN JUL AUG
SEP OCT NOV
DEC JAN
FEB
MAR
APR
MAY
T
JUN
JUL
AUG
SEP
OCT
NOV
DEC
2020
2021
COVID-19 downgrades
pick up as the virus
spreads around the world.
1. Non-Financial Corporates as of 4Q 2021.
Moody's | Better decisions
Trailing 12-month speculative-grade default rate; forecast uses Credit Transition Model
North America Latin America APAC EMEA
Represents the percentage of issuers within each sector with a negative outlook or under review for
downgrade at 9 January 2022. Sectors shown are at least 10 points above the global average
Most downgrades since outbreak have involved
speculative-grade issuers
Nearly
3,800
rated corporates
1%
globally
185
Investment Grade
0
131
Baa
48
1
5
A
Aaa
Aa
1,173
Speculative Grade
730
B
224
Ва
213
Caa
6
Ca
Calculated based on each issuer family since 1 March 2020; some issuer families have been downgraved
more than one time over that horizon. Some issuers have changed legal entities or otherwise do not align
perfectly with entities present at 1 March 2020. A significant number of new issuers were also added
4Q & FY 2021 Investor Presentation
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